Minimum Market Cap:

Maximum Market Cap:

Minimum Public Float:

Minimum Daily Avg. Liquidity:

Sector Limit:

Geographic Exposure:

United States

Rebalance Frequency:

Semi-annual

Underlying Universe:

Companies domiciled in the North America, excluding Canada, listed in U.S. exchanges

Methodology

Selection

All index constituents are selected on the basis of their fundamental strength as measured by MarketGrader’s overall grade. Built on a scale between 0 and 100, our Overall Grade is based on our 24 fundamental indicators, which are broken down into four analytical categories: Growth, Value, Profitability and Cash Flow. All of our indicators and our overall grades are calculated daily for all companies under coverage.

Equal Weighting

All index constituents are equally weighted every time the index is rebalanced. No weight modifications or adjustments are made to the portfolio between rebalance periods.

Liquidity

All index constituents must have a minimum total market cap of USD $250 million, a maximum market cap of USD $2 billion and a minimum 3-month daily traded value of USD $2 million.

Diversification

No more than 25% of the index (25 companies) may belong to the same economic sector. REITs are altogether ineligible for selection.

Rebalance Discipline

The index is rebalanced semi-annually, on the third Friday of March and September.

Strategy

The MarketGrader Small Cap Index seeks to follow the most fundamentally sound small capitalization companies with the best growth prospects in the United States. Since its constituents are equally weighted the index gives each company an equal opportunity to contribute to the performance of the portfolio regardless of sector or business model. It was designed to offer investors who follow market cap weighted benchmarks an alternative way to capture the growth among small cap stocks in the world’s largest economy and deepest financial market.